The week began with some moderate gains in most equity indexes, sp +13pts @ 2080. Yet the Transports remains a problem for the bull maniacs.. net lower for 4 of the last 5 months. Is the 'old leader' warning of a summer washout?
Trans, monthly
Trans, daily
Summary
The daily chart looks even worse than the monthly, with the Trans unable to hold above the rather important 200dma. Next support - via monthly chart, is in the 8200s.
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*bonus chart*
Something I noticed this evening....
WTIC Oil, weekly'2, rainbow
We have the first outright bullish candle on the weekly chart since the June 2014 high. If we close the week green, then I'll be seeking continued upside to at least $60, but possibly as high at $75 this summer. From there, renewed downside to $35/30, since the supply issue has not yet be addressed
Higher oil prices would certainly help give energy stocks a kick upward... along with the broader market. One particular world market to keep an eye on would be Russia, which today closed 4.1% higher. A move to declining resistance in 1150/1200s would be the natural upside target.. which is around 20% higher than the current 968 level.
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Looking ahead
Tuesday will see consumer credit data (3pm).
Fed officials Dudley and K' will be speaking in the early morning.
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Goodnight from London
